Primary cilia are sensory organelles on many postmitotic cells. The ciliary membrane is continuous with the plasma membrane but differs in its phospholipid composition with phosphatidylinositol 4,5-bisposphate (PIP₂) being much reduced toward the ciliary tip. In order to determine the functional significance of this difference, we used chemically induced protein dimerization to rapidly synthesize or degrade PIP₂ selectively in the ciliary membrane. We observed ciliary fission when PIP₂ was synthesized and a growing ciliary length when PIP₂ was degraded. Ciliary fission required local actin polymerisation in the cilium, the Rho kinase Rac, aurora kinase A (AurkA) and histone deacetylase 6 (HDAC6). This pathway was previously described for ciliary disassembly before cell cycle re-entry. Activating ciliary receptors in the presence of dominant negative dynamin also increased ciliary PIP₂, and the associated vesicle budding required ciliary PIP₂. Finally, ciliary shortening resulting from constitutively increased ciliary PIP₂ was mediated by the same actin – AurkA – HDAC6 pathway. Taken together, changes in ciliary PIP₂ are a unifying point for ciliary membrane stability and turnover. Different stimuli increase ciliary PIP₂ to secrete vesicles and reduce ciliary length by a common pathway. The paucity of PIP₂ in the distal cilium therefore ensures ciliary stability.